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Identification of Employee Performance Appraisal …

Identification of Employee Performance Appraisal Methods in Agricultural Organizations Venclov Kate ina, alkov Andrea, Kol kov Gabriela Abstract A formal Employee Performance Appraisal is regarded as one of the tools of human resources Performance management. People, their knowledge and skills are currently considered to be the most valuable resource a company has. The article focuses on methods of Employee Performance Appraisal in agricultural organizations in the Czech Republic. The first part of the article deals with the theoretical background of the term formal Appraisal and Employee Performance ap- praisal methods as defined by Czech and foreign specialists. Further, the article describes, based on a questionnaire survey, Employee Performance Appraisal methods that are considered impor- tant for the agricultural organizations in the Czech Republic. The aim of the article is to identify the current state of formal Employee Appraisal in a sample group of agricultural organizations and to test dependencies between selected qualitative characteristics.

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1 Identification of Employee Performance Appraisal Methods in Agricultural Organizations Venclov Kate ina, alkov Andrea, Kol kov Gabriela Abstract A formal Employee Performance Appraisal is regarded as one of the tools of human resources Performance management. People, their knowledge and skills are currently considered to be the most valuable resource a company has. The article focuses on methods of Employee Performance Appraisal in agricultural organizations in the Czech Republic. The first part of the article deals with the theoretical background of the term formal Appraisal and Employee Performance ap- praisal methods as defined by Czech and foreign specialists. Further, the article describes, based on a questionnaire survey, Employee Performance Appraisal methods that are considered impor- tant for the agricultural organizations in the Czech Republic. The aim of the article is to identify the current state of formal Employee Appraisal in a sample group of agricultural organizations and to test dependencies between selected qualitative characteristics.

2 The outcomes show that the most commonly used methods of Employee Performance Appraisal in agricultural organiza- tions include predefined goal-based Performance Appraisal , predefined standard outcome-based Performance Appraisal and Appraisal interviews. Agricultural organizations apply these methods in particular due to the fact that their findings are further utilized in other areas of human resource management, such as reward system and personnel planning. In statistical terms, de- pendency between the method of Employee Performance Appraisal according to predefined goals applied by agricultural organizations and personnel planning (an area of human resources man- agement) has been proven (p-value: , Phi coefficient: ). Key words: agriculture, organization, Employee Appraisal , Appraisal methods, Employee 1. INTRODUCTION. At present, people, their knowledge and skills are considered to be the most valuable resource a company has, therefore it is necessary not only to reward and develop them (Hron k, 2006.)

3 Koubek, 2007; Banfield & Kay, 2008; B lohl vek, 2009; Plam nek, 2010), but also to evaluate them, since Employee Performance Appraisal together with reward system represent an important part of Employee Performance management (Dessler in Kondrasuk, 2011; Palailogos, Popazekos, Panavotopoulou, 2011; Lussier & Hendon 2012; Snell & Bohlander 2012). Formal Employee Performance Appraisal is an evaluation process through which managers evalu- ate, compare and provide feedback on Employee Performance (Kocianov , 2010; Giangrecco, Carugati, Sabastino, Al Tamini, 2012, Murphy & Cleveland in Spence & Keeping, 2011) and manage human resources in an organization (Roberts, 2003; De Andr s, Garc a Lapresta, Gonz les Pach n, 2010). Employee Performance Appraisal is valuable for the organization, the manager as well as for the Employee evaluated. Appraisal efficiency is determined by selected Appraisal criteria, selected ap- 20 Journal of Competitiveness Vol.

4 5, Issue 2, pp. 20-36, June 2013. ISSN 1804-171X (Print), ISSN 1804-1728 (On-line), DOI: 20 11:46:27. praiser/s, selected Appraisal methods and the quality of their application (Luk ov , 2010). Knowledge regarding the specific HRM challenges farms are currently facing, and even their specific HRM practices and strategies, is limited. Identifying and structuring HRM practices and related risk in animal agriculture are important to help frame questions and provide empirical grounding for future in-depth research of agriculture HRM (Bitsch, Kassa, Harsh and Mugera, 2006). Agribusiness managers have little to rely on, when developing personnel policies and procedures for a growing business. Practices developed for large corporations often times do not scale down well to smaller businesses or may not fit the agricultural or agribusiness environment (Bitsch, 2009). The number of employees as of 31 December 2011 in agricultural, forestry and fishing sector (according to CZ-NACE) amounted to 151,200, which represents of the overall number of employees involved in the national economy (NE) of the Czech Republic.

5 This section ranks 9th (out of 19 sections as defined by CZ-NACE) as far as employment in the NE of the Czech Republic is concerned (Czech Statistical Office [CZSO], 2011). The need to address the issue of human resources in agriculture resulted from the different position of agriculture to other sectors. The other need was the lack of information on human resource management ( Performance Appraisal as an integral part of human resource manage- ment) in agriculture. This fact is supported by a few experts (Bitsch, Kassa, Harsh and Mugera, 2006; Bitsch, 2009). The aim of this article is therefore the Identification of the current state of formal Employee Appraisal in the sample group of agricultural organizations, based on analysis of survey data and testing of dependencies between selected qualitative characteristics that relate to the issues examined. The article was produced on the basis of an analysis of primary and secondary sources, in par- ticular research articles focusing on Employee Performance Appraisal .

6 Primary data is derived from a questionnaire survey carried out to explore the use of Performance Appraisal methods in agricultural organizations in the Czech Republic. 2. THEORETICAL BACKGROUND. Performance management can be defined as a systematic process for improving organizational Performance by developing the Performance of individuals and teams (Armstrong, 2012). Per- formance management is the system through which organizations set work goals, determine Performance standards, assign and evaluate work, provide Performance feedback, determine training and development needs and distribute rewards (Briscoe & Claus, 2008). Performance management is a process involving Performance planning, Performance managing, Performance Appraisal , Performance rewarding and Performance development (Deb, 2009). Performance ap- praisal can be defined as the formal assessment and rating of individuals by their managers (Armstrong, 2012). Formal Employee Performance Appraisal Employee Performance Appraisal has two forms formal (systematic) and informal (non-sys- tematic) Appraisal .

7 21. 21 11:46:27. Informal Appraisal means continuous evaluation of an Employee by her/his superior during the work process (D dina & Cejthamr, 2005). Formal Employee Appraisal is a formal organizational process conducted on a systematic basis in order to enable a comparison between the expected individual (group) and real Performance (Giangreco et al, 2012). Formal Appraisal consists of several phases and selected methods according to Appraisal areas (B lohl vek, 2009). According to Kondrasuk (2011) formal Appraisal may be defined as follows: A tool or a mode that evaluates the work Performance of an Employee . An interview in the course of which an Employee 's work Performance is evaluated and the Employee is given feedback. A system of determining an Employee 's work prospects/current work Performance /evalu- ated Performance /feedback provided to employees through Performance Appraisal and the possibilities of its future improvement/determining new goals and expectations for another period.

8 A part of Performance management. Employee Performance Appraisal methods The intention to find an optimal way of Employee Performance Appraisal led to the development of a number of methods. Methods differ in terms of their laboriousness, time demands, costs and usability, for the purposes of reward of employees subject to the Appraisal . A significant crite- rion for the distinction of methods and their suitability for specific situations is time or whether the method is aimed at the evaluating of work already carried out or the Identification of future results. Further, it is possible to classify Appraisal methods according to the area of Appraisal they cover and the time horizon they focus on. Classification of Employee Performance Appraisal methods based on the time factor according the Czech authors Three groups of methods may be distinguished according to the time horizon (see Tab. 1): meth- ods focusing on the past that are targeted at past events; methods focusing on the present state that evaluate the current situation and methods focusing on the future that are oriented towards future forecasts (Hron k, 2006).

9 A similar system of method classification is also recognised by Dvo kov (2012) who categorises methods according to the time criterion and distinguishes between methods concentrating on work already performed (on the past) and methods concen- trating on the future and identifying the development potential of employees. Methods focusing on the past have the advantage of dealing with work already done and are therefore relatively measurable. The disadvantage of this method is the impossibility of result alteration. Employee Performance Appraisal oriented towards the future focuses on future per- formance (Duda, 2008). 22 Journal of Competitiveness 22 11:46:27. Tab. 1 - Appraisal methods according to the time perspective as categorised by Czech authors. Source: Own data processed based on information obtained from selected publications (Hron k 2006; Duda 2008; Dvo kov 2012). Methods focusing Methods focusing Methods focusing on the past on the present on the future Hron k X, Dvo kov Y, Duda - Z.

10 Critical Incident Method XYZ. Assessment/Development X YZ. centre 360 degree feedback X Y. Management by Objectives Y. Predefined Standard Fulfil- ment based Performance Y. Appraisal Checklist YZ. Rating Scales YZ. Behaviorally Anchored Rating Y. Scale Confidential Report Y. Paired Comparison YZ. Self - Assessment Z. Classification of Employee Performance Appraisal methods according to foreign authors While Czech authors primarily concentrate on the categorisation of methods according to the time criterion, foreign specialists offer more types of method classification. Their classification is as follows: traditional and modern methods (Deb, 2006; Khurana, Khurana and Sharma, 2010; Rand- hawa, 2007), objective methods or Performance -oriented methods and judgmental methods (Griffin, 2012; Pride, Hughes and Kapoor, 2012), scaling methods, narrative methods (Mathis & Jackson 2011), comparative, rating, narrative and behavioural methods (Bogardus, 2007; Schermerhorn, 2011) (Tab.)


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